Nokia Outsources 2,300 Jobs to Accenture, More Layoffs

Filed under: International,Labor,News,Outsourcing |

Nokia said Friday 30 Sept 2011, that it completed outsourcing 2,300 engineering jobs to Accenture.

The move is related to the phase-out of its Symbian software development and support activities.

Nokia’s share of mobile phone market plummeted from 40% in 2008 to 29% in the first quarter of 2011. The company had planned to cut 4,000 jobs and outsource 3,000 to Accenture in April.

Nokia also said in April that it plans to reduce its global workforce by about 4,000 by the end of 2012, with the most of the layoffs taking place in Denmark, Finland and the UK. Nokia also plans to consolidate the its research and product development sites. Nokia said it expects the expansion of some sites and the contraction or closure of others.

“We must take painful, yet necessary, steps to align our workforce and operations with our path forward,” Stephen Elop, Nokia president and CEO said in a press release.

Nokia says it plans to close its plant in Cluj, Romania, by the end of 2011, “as Nokia’s high-volume Asian factories provide greater scale and proximity benefits.”

Nokia's facility in Salo, Finland.

Nokia's facility in Salo, Finland.

The company also announced it will review the long-term role of its factories in Salo, Finland, Komarom, Hungary, and Reynosa, Mexico. These factories are expected to continue to play a key role in serving European and North American smartphone customers, but the plan is to gradually shift their focus to customer and market-specific software and sales package customization. Nokia says it estimates these moves would mean more workforce changes in 2012.

“Europe is core to Nokia’s future. In addition to our headquarters, we have a strong R&D presence in Europe. We have four major R&D sites in Finland and two major R&D sites in Germany, as well as Nokia Research Centers and other supporting R&D sites in Europe. Nokia also retains a strong local presence in our many sales offices throughout this region, as well as our operations in Salo and Komarom,” said Elop.

The planned closure of the Cluj factory is estimated to affect about 2,200 employees. changes in its location and commerce business are estimated to impact another 1,300 employees. These personnel reductions are in addition to the layoffs and outsourcing moves Nokia announced in April 2011 and are expected to take effect by the end of 2012.

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